Budget 2017-18

LTCG holding period immovable property reduced to 24 months from 36 months . Section 2(42A) Amendment in Budget 2017-18

LTCG holding period immovable property reduced to 24 months from 36 months . Section 2(42A) Amendment in Budget 2017-18 

MEASURES FOR PROMOTING AFFORDABLE HOUSING AND REAL ESTATE SECTOR

Incentives for Promoting Investment in immovable property

The existing provision of the Act provide for concessional rate of tax and also indexation benefit for taxation of capital gains arising from transfer of long-term capital asset. To qualify for long-term asset, an assessee is required to hold the asset for more than 36 months subject to certain exceptions, for example, the holding period of 24 months has been specified for unlisted shares. With a view to promote the real-estate sector and to make it more attractive for investment, it is proposed to amend section 2 (42A) of the Act so as to reduce the period of holding from the existing 36 months to 24 months in case of immovable property, being land or building or both, to qualify as long term capital asset.

This amendment will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent years.

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